GMC 0.00% 0.6¢ gulf manganese corporation limited

Has any of the GMC cheer leaders ever asked themselves the...

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    Has any of the GMC cheer leaders ever asked themselves the question.
    Why did the Japanese ferro alloy industry close down?
    ANSWER
    Cost of power
    "Power costs in Japan are 9-to-10 US cents per kwh, which are very high for power intensive industries."

    Whilst its easy for GMC cheer leaders to get enthusiastic that Indonesia has high grade Mn ore deposits, they forget the fact that power is the most important issue/cost in producing ferro alloys.
    So we can see that these high power prices started to bite back in 2013, and much of the ferro alloy industry was wound back. So what did the Japanese steel producers do?
    They took large stakes in new entrants in the ferro alloy industry in Sarawak Malaysia. WHY?   CHEAP POWER

    "The Japanese steel mills will now increasingly resort to imports of ferro manganese.
    They are also getting into joint ventures with South African and Australian parties to produce manganese ferro alloys for Japan and also for the world market. The production from these joint ventures would knock out the domestic ferro alloy producers."
    Have a look at the top shareholders in the 3 major ferro alloy smelters in Sarawak, yes Japanese steel mills.

    So if Japan ferro alloy producers couldn't make money at  "9-to-10 US cents per kwh" how will GMC make money when the power costs are more now and will be considerably more from Dec 2019 onwards  ( ie after the election as the power costs will rise substantially, as PLN is currently losing lots of money)

    https://www.business-standard.com/a...n-ferro-alloys-production-198041301025_1.html
 
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